The Prime Daily: 03 September 2026

Authored By Prime Research | Published at: Sep 3, 2026 09:20 AM IST

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Tech Shares Lift Wall Street Off Three-Day Slide

Wall Street benchmarks managed to break a three-day losing streak on Wednesday as big technology gains and a slight easing in long-dated Treasury yields provided relief. The Dow Jones rose nearly 300 points, while the S&P 500 and Nasdaq Composite both advanced roughly 0.5% in a partial rebound from early-week selloffs.

Crude oil prices remained volatile and elevated, trading near $95 per barrel for international Brent futures. Fresh military exchanges between the United States and Iran have stoked ongoing anxieties about supply disruptions around the critical Strait of Hormuz gateway.

Cryptocurrencies faced a downturn as Bitcoin slipped below the $77,000 threshold and Ethereum declined. Risk-off sentiment, triggered by geopolitical conflicts and mounting fears of persistent interest rate hikes, continues to limit non-yielding digital asset valuations.

The dollar index hit a two-week high near 99.87 before easing back to the 99.50-99.60 range, with EUR/USD sliding to two-week lows near $1.15 before stabilising around $1.16. Markets now price in roughly a 65% chance of a September Fed rate hike, up sharply from ~40% a week earlier, following hawkish signals from new Fed Chair Kevin Warsh.

The US labour market showed signs of moderation, with private payrolls rising by 38,000 in August, below expectations and down from a revised increase of 46,000 in July. Growth in education and health services was offset by job losses in manufacturing and several other sectors.

Inflows through the RBI’s concessional swap facility reached USD 136.4 billion by August 31, with banks mobilising USD 127.2 billion through FCNR(B) deposits, significantly exceeding late-market expectations of USD 90–100 billion. Banks have also raised USD 5.3 billion through OFCBs and USD 3.9 billion through ECBs.

Consequently, surplus liquidity in the banking system surged to ₹7.76 trillion on Tuesday from ₹6.65 trillion a day earlier, driven by continued inflows under the RBI’s FCNR(B) swap scheme. The RBI conducted an overnight VRRR auction to absorb excess liquidity, receiving bids worth ₹4.59 trillion against the notified amount of ₹5 trillion.

The Japan Credit Rating Agency (JCR) has upgraded India’s credit rating by one notch from BBB+ to A-, it announced on Wednesday, citing India’s relatively high growth, the government’s growth-oriented policies, and the improved strength of the financial system.

Nifty extended losses for the third consecutive session, shedding 141 points to close at 23,914 yesterday, as selling pressure persisted amid broader market weakness.

The index opened nearly 200 points lower and remained under pressure through the first half, but a second-half recovery of over 100 points capped losses, with Nifty finishing near the day’s high yesterday. Immediate resistance is placed around 24,200. On the downside, a sustained break below 23800 level could extend the correction toward the next major support near 23,600.

Indian equities are poised for a moderately higher open, buoyed by a sovereign rating upgrade, stable crude and currency markets, and firm cues from Wall Street and Asian peers.

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